Ethanol Blog

Spot Biodiesel Prices Plunge 19 Cents in Wake of OPEC Decision

Myke Feinman
By  Myke Feinman , Refined Fuels Reporter

Spot biodiesel values have lost 19 cents since the eve of Thanksgiving Day, as they track losses by New York Mercantile Exchange ULSD futures, formerly the heating oil contract, in reaction to the Thanksgiving Day decision by the Organization of the Petroleum Exporting Countries to not cut their production despite a building world supply glut.

"Until heating oil stabilizes, there is going to be downward pressure on biodiesel prices," said Pete Moss, biodiesel analyst and president of Frazier Barnes and Associates, Memphis, Tenn. "We should be nearing a bottom in heating oil given how far it has plunged."

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Nearest delivered ULSD futures have toppled 29.54 cents since Nov. 26, posting a fresh 50-month low at $2.0984 Friday morning.

Spot biodiesel prices were pegged at $2.86 per gallon at the key hubs of Chicago, New York Harbor and Houston, down from $3.05 per gallon at the end of the session before the Thanksgiving holiday.

Myke Feinman can be reached at myke.feinman@telventdtn.com

(ES)

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